Sometimes the curtain is pulled aside, allowing us to see what’s going on in the often-opaque worlds of government and finance. Such an occasion has been happening with what’s being called the Panama Papers, released April 3 by the International
Sometimes the curtain is pulled aside, allowing us to see what’s going on in the often-opaque worlds of government and finance. Such an occasion has been happening with what’s being called the Panama Papers, released April 3 by the International Consortium of Investigative Journalists. It’s going to take years to wade through the estimated 11 million documents leaked from a Panamanian law firm that specializes in crafting tax shelters.
But initial disclosures are troubling and offer insight. “The documents reference 12 current or former world leaders, as well as 128 other politicians and public officials,” CNN reported. Implicated, in particular, are associates of Russian President Vladimir Putin; FIFA, the global soccer governing body, 40 of whose officials were indicted in 2015 by the U.S. Justice Department on corruption charges; and Iceland’s Prime Minister Sigmundur David Gunnlaugsson, who resigned Tuesday.
Panama is notorious for money laundering, especially of drug cartel proceeds. Doing so is wrong. But it also should be put in context. People launder money gained through illegal activities, or to avoid high taxes. A fundamental reform against corruption, therefore, would be to reduce taxes and consider legalizing some activities that don’t involve harm to people.
Here’s a great example. “Marijuana legalization may have accomplished what the ‘war on drugs’ has failed to do — put the squeeze on Mexican drug cartel activity,” the San Francisco Chronicle recently reported. “The U.S. Border Patrol has released 2015 data showing that the number of marijuana seizures throughout the Southwest U.S./Mexico border has fallen to the lowest level in a decade.
“Mexican manufacturers of illegal marijuana bricks have driven down prices as residents in California, Colorado and Washington state now have safe access to reasonably affordable medical marijuana and/or recreational cannabis.” Prices have dropped by as much as two-thirds, to about $30 a kilo.
More details will be coming out on the Panama Papers. And some activities — robbery, murder and terrorism — always will be illegal, and related money laundering ought to be punished. But government best can focus on real crimes by reducing or eliminating punishment of nonviolent, victimless offenses.
— The Orange County Register
